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¢ The common law (the United States)
* CISG
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The Common Law • Definition Acceptance is a voluntary act (either words or conduct) by the offeree that shows assent (agreement) to the terms of an offer. The acceptance must be unequivocal and must be communicated to the offeror. Docsity.com • It is reasonable for the offeror to state, “By your silence and inaction you will be deemed to have accepted this offer.” • Silence can never be an acceptance. (Silence can be an acceptance (1) when the parties have made such agreements or (2) when the offeree has had prior dealings with the offeror.) Docsity.com CISG • Definition Article 18 A statement made by or other conduct of the offeree indicating assent to an offer is an acceptance. • Three basic elements to make a valid acceptance (1) offeree (2) through a statement or other conduct (3) indication of assent to the offer Docsity.com When the acceptance becomes effective? • Under the common law, the acceptance becomes effective as soon as it is dispatched by the offeree, and then a contract is formed. ----the mailbox rule • Under the civil law, the acceptance becomes effective when it reaches the offeror, and then a contract is concluded. ----the rule of receipt of the letter of acceptance Docsity.com Whether a late acceptance is effective? There are two kinds of late acceptance. 1. The offeree makes an acceptance beyond the time limit for acceptance. That is, it is late when the offeree dispatches the acceptance. It is impossible for such acceptance to become effective except that without delay the offeror informs its effectiveness. Docsity.com 2. The offeree dispatches the acceptance within the time limit for acceptance but the acceptance reaches the offeror beyond the time limit. That is, it is not late when the offeree dispatches the acceptance, and if its transmission had been normal, it would have reached the offeror in due time. Docsity.com Such late acceptance is generally effective as an acceptance unless without delay the offeror informs the offeree that he considers his offer as having lapsed. ---- Art.21 Docsity.com Whether a reply to an offer containing additional or different terms constitutes an acceptance? whether the terms constitute material alteration? Material alteration: price, payment, quality and quantity of the goods, place and time of delivery, extent of one party’s liability to the other or the settlement of disputes Docsity.com Case analysis: A computer printer distributor in Argentina receives an offer by mail from Epson, a U.S. company, in reply to an inquiry. The offer arrives in Argentina on June 2. On June 12, the Argentinean company sends its acceptance by mail. On June 8, Epson sends a revocation of its offer that was received on June 13 in Argentina. The acceptance from Argentina arrives in the United States on June 17. Did a valid contract arise? When was the offer valid? When was the acceptance valid? When was the revocation valid? Decide the case under the common law and under the CISG. Docsity.com Case analysis: offeree offeror Argentinean distributor The U.S. Epson com. June 2 receive an offer June 8 send a revocation of its offer June 12 mail the acceptance June 13 receive the revocation June 17 Acceptance arrives Docsity.com